ETF Spotlight: PowerShares India Portfolio (PIN)

September 22nd at 2:00pm by Tom Lydon

ETF Spotlight on PowerShares India Portfolio (NYSEArca: PIN), part of a weekly series.

Assets: $482 million

Objective: Tracks the Indus India Index, an index of 50 companies designed to represent the total Indian equity markets.

Holdings: Top holdings include Reliance Industries, Infosys Technologies, Indian Oil Corp. and Reliance Communications

What You Should Know

  • The top-weighted sector in PIN is energy, with 27.7% of the weighting. Other major sectors include information technology (15.2%), financials (13.8%) and utilities (11.4%).
  • The fund is nearly entirely composed of large-cap companies, although mid-caps make up 1.3%.
  • PIN has an expense ratio of 0.78%.

The Latest News

  • India’s stock market and PIN are at two-year highs
  • Industrial output, which grew 13.8% in July, is a major factor for growth in India. The double-digit output growth was much higher than the single-digit growth previously expected.
  • It’s predicted that the country’s annual economic growth may top 9% in the next five years, which would make the country the world’s fastest-growing major economy. India’s economy expanded 8.8% in the second quarter year-over-year. [Agriculture Sector Threatens India ETFs.]
  • India is seen as the only economy in Asia driven by domestic demand. India’s export gains fell more than 50% in July to 13.2% from the previous month. [Best ETFs to Play India.]
  • The Reserve Bank of India is reducing its credit-tightening policies as inflation abates and companies signal a peak in short-term borrowing costs. The Central Bank estimates that inflation will drop to 6% by March 31, compared to an average 10.5% in the first seven months of the year. Bond yields have widened to 0.63% against swap rates since February.

India ETFs

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The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.

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